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CBDT Extends Safe Harbour Rules 10TD to AY 2021-22


CBDT vide Notification No. 117/2021 dated 24.09.2021 in G.S.R. 661(E) has extended the validity of safe harbour provisions for transfer pricing issues of Rule 10TD(1) & Rule 10(2A) till Assessment Year 2021-22. Rule 10TD prescribes a list of eligible international transactions where the transfer price declared by the assessee shall be required to be accepted by the Income-tax Authorities.

CBDT has kept the same rates for AY 2021-22 as it was prevalent in AY 2020-21.

As per the notification, the rates applicable from FY 2016-17 to FY 2018-19, and later extended to FY 2019-20, will continue to apply for FY 2020-21 as well. Like last year, this year again, the rates have been prescribed for one year only, instead of a period of three years and five years earlier.

Rule 10TD(1) and Rule 10TD(2A) prescribe a list of eligible international transactions where income-tax authorities shall accept the transfer price declared by the taxpayer at arm’s length.

Sub-rule (3A) to Rule 10TD provides the time limit for the applicability of Rules 10TD(1) and 10TD(2A). It provides that provisions shall apply for the Assessment Year 2017-18 and the following two Assessment Years. In other words, it shall apply for thee AYs 2017-18 to 2019-20. Later the Board has inserted a new sub-rule 3B to the Rule 10TD to extend the applicability to AY 2020-21.

The Board has now amended Rule 10TD(3B) to further extend the applicability Rule 10TD till Assessment Year 2021-22.

Read the full text of Notification No. 117/2021 dated 24.09.2021 on Extension of Validity of Safe Harbour rules till AY 2021-22


(Department of Revenue)



New Delhi, the 24th September, 2021


G.S.R. 661(E).—In exercise of the powers conferred by sub-section (2) of section 92CB read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:___

1. Short title and commencement. - (1) These rules may be called the Income-tax (30th Amendment) Rules, 2021.

(2) They shall be deemed to have come into force from the 1st day of April, 2021.

2. In the Income-tax Rules, 1962, in rule 10TD, in sub-rule (3B), for the words and figures “assessment year 2020-21”, the words and figures “assessment years 2020-21 and 2021-22” shall be substituted.

[Notification No. 117/2021/F. No. 370142/44/2021-TPL] 

NEHA SAHAY, Under Secy. (Tax Policy and Legislation)

Explanatory Memorandum : It is hereby certified that no person is being adversely affected by giving retrospective effect to these rules.

Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, section-3, sub-section (ii) vide number S.O. 969 (E) dated the 26th March, 1962 and were last amended vide notification number GSR 627 (E) dated the 13th September, 2021. 

Download CBDT Notification No. 117/2021 dated 24.09.2021 on Extension of Validity of Safe Harbour rules till AY 2021-22 in pdf format

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